Fubo Files Antitrust Lawsuit Against Disney, Fox and Warner Bros. Discovery
FuboTV Inc. filed an antitrust lawsuit against The Walt Disney Company, Fox, and Warner Bros. Discovery today, alleging that the three media companies have engaged in a years-long campaign to block Fubo’s sports-first streaming business. This plot, the streamer argues, has resulted in significant harm to both Fubo and its customers.
The tippping point for Fubo seems to have been this month’s announcement that Disney, Fox, and Warner Bros. were teaming together on a new joint venture to create a sports-centric streaming platform.
Photo: Deadline
Fubo’s Problems With Disney’s New Sports Streamer
Fubo says that the three companies are stealing their “playbook” in what is just the latest instance of unfair business practices.
In their filing, Fubo notes that Disney, Fox, and Warner Bros. control more than half of the U.S. sports rights market and that by joining forces, they have created a company that will put other distributors at an extreme disadvantage.
Photo: Disney
“Each of these companies has consistently engaged in anti-competitive practices that aim to monopolize the market, stifle any form of competition, create higher pricing for subscribers and cheat consumers from deserved choice. By joining together to exclusively reserve the rights to distribute a specialized live sports package, we believe these corporations are erecting insurmountable barriers that will effectively block any new competitors from entering the market. This strategy ensures that consumers desiring a dedicated sports channel lineup are left with no alternative but to subscribe to the Defendants’ joint venture,” David Gandler, Co-founder and CEO, Fubo said.
Fubo’s Other Complaints
Among Fubo’s other complaints is the use of unfair “bundling” by the three defendants, which has forced Fubo to carry dozens of expensive non-sports channels that its consumers do not want as a condition of licensing.
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Additionally, Fubo alleges that the three defendants have routinely charged Fubo 30%-50% higher licensing rates than other distributors. They also argue that the three defendants have restricted Fubo from offering “compelling streaming products that consumers would find desirable, despite similar products being offered by other traditional pay TV.”
The Walt Disney Company
Fubo is seeking, among other things, to enjoin the joint venture or alternatively have restrictions that would foster economic parity imposed on the three companies. They are also asking for payment for “substantial damages.”
“Simply put, this sports cartel blocked our playbook for many years and now they are effectively stealing it for themselves,” Gandler says.
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